Bluegrass Breakdown was first recorded by Bill Monroe in October 1947. This recording was made by the first classic line-up of the Blue Grass Boys: Bill Monroe (mandolin), Lester Flatt (guitar), Earl Scruggs (banjo), Chubby Wise (fiddle), and Howard Watts (bass).

The original title of the tune was Blue Grass Breakdown but this became Bluegrass Breakdown as the name for the genre changed from Blue Grass to Bluegrass.